When HP unveiled its Slate tablet PC around the time when rumors were swirling in earnest that Apple would be calling their tablet the Windows 7 running “iSlate,” they seemed at a big disadvantage. The iPad, after all, would run an operating system tailored from the ground up for fat, poking fingers, while Windows 7’s multitouch capabilities are a hack job. HP’s Slate was at a disadvantage from the software level up.

It looks like HP agrees. Now that they’ve bought Palm and have access to the webOS operating system, it looks like they’re canceling all Windows 7 based tablet products. According to a report coming out of Techcrunch, a source familiar with the matter says that HP has canned the Slate since they aren’t happy with Windows 7 on a tablet device. They are looking at webOS right now to meet the needs of their future tablets.

This is a good move on HP’s part, but it has larger ramnifications. webOS doesn’t run on Intel Atom CPUs, so if the Slate comes to light of day as a webOS device, it’ll need to be running an ARM processor, just like the iPad. That’s a good move — Atom CPUs aren’t meant for tablets — but it does mean that any HP Tablet will end up being many months, or even a year, off, while its re-engineered from the ground up.